First Cut closes $5m raise, seeks more entrepreneurs under 30

Pyper Vision's prototype drone, which dispenses a moisture-absorbing spray to clear fog from around an airport runway in as little as 10 minutes. Photo / Supplied

First Cut - the youth wing of Icehouse Ventures - has just closed a $5 million raise for its third fund, and is now on the lookout for more entrepreneurs under 30.

The fund is gearing up for its annual Startup Challenge pitch competition, where the winners get a First Cut investment of up to $1m.

The $5m came in part from experienced hands like Dana MacKenzie and Sir Stephen Tindall.

But Icehouse investment principal Steph Benseman notes that previous Startup Challenge winners paid it forward by contributing to the $5m First Cut Fund III - including Craig Piggott, founder of smart cow startup Halter and Sharesies founders Leighton Roberts and Brooke Roberts.

While the focus on the under-30s might seem a little Logan's Run to older readers, Benseman points out Icehouse has other (much larger) funds for the older 30s.

And, more that, a number of recipients of First Cut seed money have gone on to substantial Series A and B raise. The rollcall includes Halter, which boosted staff to more than 100 after a $32m Series B raise in 2021 and Sharesies' recent $50m raise and alternative commentary platform Spalk, which raised $4.3m last year in a Series A round supported by Steven Adams and Greg Norman.

And Benseman says it helps to have a fund dedicated to the under-30s, given they're both more open to a career in a startup - and have a different take on business.

"Growing numbers of young people see entrepreneurship as an exciting and viable career path," she says.

"Today's youth want to lead a life with purpose that tackles some of our most pressing social and climate issues. They see starting a company as the best way to do this, and believe it is the pathway to a more sustainable and prosperous lifestyle."

She quotes a Nielsen study which reported that 54 per cent of people born after 1997 want to own their own company and a Gallup student poll shows that around 40 per cent say they plan to start a business and/or invent something that will change the world.

To enter this year's First Cut Startup Challenge, entrepreneurs under 30 must register their interest on the Challenge's website before June 27. They then have until July 1 to submit a pitch deck.

Accompanying the Challenge is a nationwide "Startup Speaker Series" to be held on university campuses from May 16 where aspiring entrepreneurs can learn about starting a company and ask questions of New Zealand's top entrepreneurs who launched their startup in their late teens or early 20s.

Speakers include Fia Jones, founder of satellite company Astrix Astronautics (who is in the process of raising $7m and recently saw Rocket Lab launch her startup's first prototype solar array), Leila Deljkovic, co-founder of agricultural monitoring software Cropsy Technologies, and James Powell, co-founder of space tech company Dawn Aerospace.

Last year's pitch winners included car-sharing startup Hitch, which links commuters with drivers with seats to spare, and Wellington-based Amplifier - a platform that allows for one-to-one networking during virtual events. Both are still at a very early stage.

First Cut principals Steph Benseman and Mason Bleakley. Photo / Supplied

Pyper Vision, which received $700,000 in seed investment after entering the Startup Challenge in 2018, is further down the track.

It proved quite the springboard.

The Christchurch-based firm recently received government backing to run airport trials for its fog-clearing system, which sees drones deploying a special spray that can absorb moisture, clearing the air around runways.

Founder and CEO Emily Blythe told the Herald, "We are not putting timelines forward as we can only move as fast as the regulator ... [But] we've been around for five years and completed over 200 fog dispersal tests during this time across New Zealand and Australia.

"During this time we have shown [our] absorbent effectively mimics nature and can clear a critical area of sky in as little as 10 minutes, allowing safe take-off and landing to resume. It's a simple idea that could solve a multibillion-dollar problem."

Blythe added, "Ultimately our goal is to go global. Pyper Vision is aiming to test and use its technology in airports throughout New Zealand and then overseas."